ETH at Critical Support, Breakdown Can Quickly Lead to $1200

Despite the ongoing bearish sentiment among market participants after the recent SVB bank turmoil and its effect on USDC, Ethereum price has found substantial support amidst the $1450 price range.

The coming days will be crucial to see if ETH can maintain its critical level or continue its negative sentiment.

Technical Analysis

By Shayan

Daily Chart

After breaking above the symmetrical triangle upper trendline and consolidating for a long time, Ethereum price has been dropping and is currently retesting the previous breakout level of $1450.

If ETH maintains this level, traders can expect another bullish leg towards the crucial $1700K resistance level.

However, if the price drops below the trend line, a drop towards the $1.2K support level may be imminent. Nevertheless, the triangle’s upper trendline aligns with the 200-day moving average at $1450, providing a solid level of support.

4 Hour Chart

The ETH price has followed an ascending price channel (as shown below). However, it recently dropped below the mid-equilibrium line, producing a cascade. However, the price has now reached the channel’s lower border, temporarily finding support.

Prices are ‘stuck’ in a tight range between the lower threshold of around $1410 and the static resistance area of ​​$1500. ETH is likely to break this range in the coming days, and the direction of the break will determine the next short-term direction for ETH.

By Shayan

The Taker Buy/Sell Ratio is an indicator that helps understand market sentiment by showing whether there is more buying or selling activity.

During the recent ETH bullish leg, we observed a spike in this metric, confirming the positive market sentiment. However, as the price enters a consolidation phase and drops significantly after that, the metric drops below one, indicating a change to strong bearish sentiment.

As a result, the metric plummeted to a new low in months, suggesting that the market is unlikely to enter a bullish phase unless the metric reclaims a value above one.